“Is not true! Right here in Chicago Tribune, it read—how you say—kamikaze squirrel.” Donatis Ludditis thumps a stout digit on a newspaper headline and continues in his broken English. “Creature attack alderman. Throw itself into wheel of bicycle in suicide attack! Here is proof, see?” He points to a photograph—a photograph that Brookins took himself. It shows the murdered animal lodged in the spokes of his ruined bicycle. “Newspapers in whole country print story.” says Ludditis. “Not one say alderman cruel to animals! Not one time!”

The Brookins story has re-surfaced in news outlets because the man is up and taking nourishment after recovering from major injuries. At the time of the accident, he was credited with some rather peculiar remarks. Apparently, because of his vigorous opposition to the eastern gray squirrel and his call for the extermination of the species, the local underworld of tree dwelling rodents staged a coordinated and premeditated suicide attack against their arch nemesis. Now he’s on his soap box, again garnering support for his cause. It makes me wonder if this guy read too many comic books in law school.

During this exchange, Jim Kren’s face—never a pleasant sight—screws up tighter and tighter in what I always take as a combination of anger and spite. I’ve been watching him and waiting for an explosion. It begins with a slow leak. “You two judicial giants know nothing whatsoever of the true ramifications of this matter,” he says. “I can tell you a thing or two about the eastern bloc squirrel. Some of it will curl your hair. People know they are astoundingly cunning rodents, but there is more—much more!”

Kren looks to be on a roll. “This eastern bloc squirrel represents the most monstrous and pernicious plot against humanity since the fluoridation of water! We face a much larger threat than that posed by the proliferation of common vermin. These squirrels are more capable than rats and possess a much higher intelligence!” Kren gets increasingly loud and shrill. “Eastern bloc squirrels look out for their kind and know who is persecuting them! If you thwart their plans, they figure a way to take care of the problem! Nothing can stop them from getting what they want!”

Lonagan takes a seat, shaking his head in hopeless abandon. I’ve heard Kren utter such a sentiment before, but never an inkling of this political angle. The man bears watching.

“Agents of sedition started smuggling these iconoclasts to our shores decades back!” shrieks Kren. “And they now represent the dominant species! Think of it! Squirrels in your own back yard—the place where your children play! Your children! Talk about infiltration! And they remain there all night, listening to your every word! They meet in secret, pass on intelligence, and formulate plans!”

“So,” says Lonagan with a smirk. “How d’ya figure they listen in on City Hall?”

Kren doesn’t miss a beat. “Don’t be so naive, MISTER Lonagan! In an era of central heating, do you actually believe they cannot gain easy access to any building they choose through the HVAC system? Certainly, gentlemen, it is child’s play for the eastern bloc squirrel to monitor a city council meeting and plan a counter-attack! I could show you one of their secret websites! It disseminates information about these scheming rodents to their craven human allies! It’s written in a code—a code colloquially known as poetry—a cryptic language few speak any more. Let me show you an excerpt.”

“Gentlemen, what to you say to that?!!!” Krens interogatory smacks of satisfaction—like he’s busting out with a SO THERE!“If you truly want to gain an inside knowledge of the malicious nature of these animals, here is this!”

Kren leans forward and speaks in a more secretive tone. “Most do not know that these eastern bloc squirrels plotted world dominance long before the era of modern totalitarianism. Men are putty in their paws! Have any of you read the squirrel manifesto? No? It is the most outrageous collection of hate and bile uttered by any animal since the beginning of time! I keep an excerpt with me—it is written in the same foul poetic code.”.

Lonagan opens his eyes wide and his nose almost touches Kren’s. “So I take it you’se is sidin’ with da Alderman?”

“Yes!” says Kren, squaring his shoulders and pushing back.“I take the good Alderman’s side on this issue—and not without reason! I know! The eastern bloc squirrel is alien to everything we stand for! I can no longer permit alien infiltration, alien sedition, and the international eastern bloc conspiracy to sap and impurify our entire way of life!”

Time for me to pull rank. “Gentlemen,” I say. “Let us repair to the front room for some refreshment. I have another matter to discuss.”

WHAT THE NEW ADMINISTRATION MIGHT MEAN FOR HEALTH CARE

By Erik Clausen

Several months have passed since the U.S. Presidential election, and…we’re still here, folks. After years of political rhetoric and theatrics, and a few months of uncertainty, we are starting to gain some clarity around exactly what the new administration and its policies might mean for the life science industry and, by extension, marketers within it.

Most importantly and as a wise man wrote before the election, “There is no need for panic.”

Edvard Munch – The Scream

Now that the rhetoric has momentarily quieted, we need to balance Trump’s desire to make dramatic policy changes with the realities of the legislative process and with the expectations of a public that benefits from life science and healthcare innovation. Widespread policy changes take time to implement and often require strong Congressional support, even with a Republican-controlled House and Senate. The recent defeat of the health care bill is a case in point.

In other words, as we look at the major policy changes that are likely to affect life science marketing in the years ahead, we need to recognize that there will be time to adjust marketing strategies and tactics accordingly. This may even mean building multiple marketing plans to address different contingencies.

Possible repatriation of US dollars

U.S. pharmaceutical companies have substantial funds tied up in accounts overseas due to punitive tax laws. The administration has proposed, as part of his economic stimulus plan, to dramatically reduce this tax rate and encourage those dollars to come back to the U.S.

In theory, by lowering the tax burden on these businesses, the economy will see an uptick as businesses are encouraged to invest. These companies benefitting from tax relief would in turn reinvest those dollars domestically in the form of new deals, R&D, acquisition and job creation.

Since pharmaceutical and instrumentation companies typically grow based on acquisition, we could see a resurgence in life science M&A and dramatic increases in the value of emerging biotech, diagnostic and tools companies. No doubt, these topics are top of mind at industry gatherings like the January 2017 J.P. Morgan Healthcare conference.

If this move does have the immediate and positive effect on the life science sector as promised, it would give corporate brand managers and marketers much to do to position their companies correctly to take full advantage of the M&A environment.

Of course, this assumes that the financial boon to corporations is reinvested or used for acquisition and not simply distributed to shareholders. Increased deal-flow will lead to increased budgets. This will undoubtedly bring increased noise in a busy economy. Therefore, we should focus on building long-term brand equity in an expanding GDP and economy.

Corporate tax rate reduction

The administration will also propose in the President’s Budget Bill, a much lower corporate tax rate. This plan would significantly reduce the cost of capital and reduce the marginal tax rate on labor.

By most analyses, these incentives could increase the U.S. economy’s size in the long run, boost wages, and result in more full-time equivalent jobs—including in the life science sector. The question remains, what the estimated reduction in federal revenue will mean for federal funding of medical and scientific research. Such grants often precipitate early discovery that soon become commercialized.

The size of the proposed tax breaks for corporations are, simply put, “Huge.” But if the administration can actually get it through Congress, it has the potential to give corporations exponential buying power, increase cash flow, build up inventory, and re-invest in technology. Dismissing any possibility of a bubble and or the rich simply getting richer, these tax breaks should create jobs and boost all sectors of the economy, including life science and healthcare.

Reforming the FDA

In his 100-day plan, Trump specifically cited, “…cutting the red tape at the FDA…” as among his highest priorities. In the plan, he stated that, “…there are over 4,000 drugs awaiting approval, and we especially want to speed the approval of life-saving medications.” We can only assume that such reforms would also have a direct effect on approval and clearances for new medical devices and diagnostic tests, as well.

An accelerated approval process at the FDA could potentially have a positive effect—at least in the short-term—on the life science sector. With therapeutic candidates and devices moving more rapidly through review than anticipated, biotech, pharmaceutical and device companies in mid to late stage clinical phases could see increased valuations of companies with early approvals.

Additionally, this could encourage earlier stage companies to get more ambitious about moving candidates to the clinic and could make would-be acquirers more bullish.

In the long term, if that accelerated review brings products to market too quickly, it could threaten public health, cause another costly set of reforms, and damage the brands of those companies.

What does the new agenda mean for marketers?

While it will take some time to feel the effects on any proposed legislation or policy changes, the administration will tie everything back to growing the economy: no small challenge. A lot has to come together with or without a cooperative Congress. The President will have to build a consensus.

For now, as marketers we need to do what we’ve always done—assess market opportunities, pinpoint our target audiences, develop smart strategies to reach and influence their behavior, and measure outcomes. Certainly, researching the impact of policy decisions is part of that research, but acting too quickly on proposed policy changes only fuels uncertainty.

And, if there is one truth in the market, it doesn’t like uncertainty.

In the end, even if the President is able to pass a fraction of what he’s proposing, it should lead to economic prosperity and marketing opportunity in our industry.

Now, if we could just turn off his Twitter account, we might make social media great again, as well.

■

About the Author

Erik Clausen is part of the Chempetitive Group, a Chicago based marketing initiative for pharmaceutical, chemical, biotechnology, diagnostics, and medical devices.

He continues his impromptu soliloquy. “Why don’t deeze malcontents all move t’ Greece?” Ah, Greece—where socialism is in full bloom and the weather is gorgeous. “Maybe President Elect Trump will offer free one-way luxury cruises to da Mediterranean and make da Greeks pay for it.” Lonagan figures that will make everybody happy. But then he reflects that Greece is bankrupt. Socialism didn’t work there.

European-style Riots in Chicago – [The Washington Times]

The riots disturb Lonagan because he now sees a political party that generates looters. His own! “Hmmf!” It shames him. He’s embarrassed for the European decadence of his people. This is not our way. Americans don’t throw temper tantrums after elections. We vote. We accept what happens. We come together. These are principles Lonagan grew up believing.

He pats his bull terrier, Clamps. The dog lets out a long satisfied sigh while Lonagan takes a stiff slug of scotch. “You never worry ‘bout dis kinda stuff, do you Clamps old buddy?” In this election, with a choice between the crass and the criminal, Lonagan never expected a good outcome. In his view, which he loudly stated to everyone that would listen, “Anybody with half a brain knows we’s gonna get one o’ two things—Cleopatra II or Nebuchadnezzar III.I dunno which is worse. So why all da fuss?”

Improbable White House Briefing – [Associated Press]

As a practical man, Lonagan figures the real game is to do well no matter who is in office. On the night of the election—during all the hyper uncertainty—when index futures were tanking big time—Lonagan capitalized on the unexpected. He went Long all he could during the after-hours session on slim capital and crazy margin, using all the leverage he could muster. Now, during the riots, he’s cashing out of those positions to the tune of millions. But what if—

A small tug at his sleeve and he suddenly remembers his duties as a babysitter. He shuts off the TV and takes Jim Kren’s little girl into his arms.

“I—uh,” he squeezes out the difficult words, “I love you too, Angelica. Lemme tuck you in.”

And when he sets her on her feet, she bursts out, “And tell me a bedtime story!”

“I dunno, Princess. Last time yer papa grilled me fer an hour—”

“But I want to hear what happens to the Dragon Lady and the Big Bad Duck.”

He stares at her good and hard. Precocious little tike. “No, babe, it don’t seem right to—”

“Please, Uncle Loop. PLEEEEEZE!”

Lonagan wipes a hand across his jaw. It’s nine o’clock. Mama and papa are out. He’s supposed to use his judgement in emergencies like this. “Okay, Princess.” He can hardly believe what he hears himself saying. “We’ll do anudder chapter o’ da Dragon Lady ‘n’ da Big Bad Duck.”

Angelica claps her hands and jumps in place, her long curls bouncing on her shoulders. “Thank you, Uncle Loop!”

“Go brush yer teeth er somethin.’ I’ll be right up.”

She calls out, “Clamps!” The enormous bull terrier bounds up the stairs after her.

Crazy Political Campaign – [Associated Press]

Lonagan goes over the images of this absurd campaign and pours himself three more fat fingers of scotch. He’s playing with dynamite and curses his lousy imagination—using hardcore news to create a bedtime story—stupid, just stupid. Chicago-style political intrigue on the national stage is a tough lesson for anybody. It’s the wrong material for a youngster. Maybe it’s child abuse. He wishes he never told her that story, but he did and now she wants the rest of it.

He pours more scotch. Maybe, just possibly—if he sticks to the script and keeps the whole thing in a child’s world—it might all turn out fine. All the Lonagans love happy endings. Plunking down his empty whiskey glass, he checks his watch. Five minutes. Showtime. And keep it clean!

Upstairs, Angelica is curled up with Clamps, rubbing the dog’s ears. The animal squeezes its eyes closed in ecstasy and rumbles a soft, deep rhythmic growl. He’s the only dog Lonagan knows that can purr.

Clamps is at Peace – [John Jonelis]

After pulling the covers over those two, he settles his rump on the foot of the bed. “Okay Princess, lemme catch up on da story. Best I can remember, yer at school, it’s recess, ‘n’ yer gonna play soccer. It’s da Jackasses—I mean da Donkeys vs. da Elephants. You’se is picked fer da Elephant team, right?”

“Okay then. So we already know her plan with da Duck. He’s s’posed t’ start a big fight. Then he’s s’posed t’ take his regulation soccer ball ‘n’ summa da best players on yer team with ‘im. Then they’s s’posed t’ go off t’ play with some udder kids. So yer team loses. That’s called splittin’ da ticket. That’s Civics 201. I think dat’s da way I told it last time.”

Angelica blurts, “I know, I know! That Dragon and Duck! They planned this whole mess together! And now my team doesn’t stand a chance!”

Angelica sits straight in bed. “But Uncle Loop, that means the Dragon has to play against the Duck. That doesn’t make sense. She would never plan it that way.”

“Ah, Princess, lay back ‘n’ relax.” He tucks the covers under her chin. “Doncha see? She WANTS t’ play against da Duck. She figures he’s her easiest opponent ’cause allota his team won’t play so hard for ‘im. I mean, plenty o’ kids don’t like dis guy so much. He’s her handpicked patsy. Has been since day one. She’s so sure she can beat ‘im, it tastes like candy. Ever’body says she can’t lose. She already watched him bust up da udder team ‘n’ now she’s ready fer da killshot. Pick yer opponent. That’s Civics 401.”

Angelica squeezes out a tear. “So my team loses anyway? This is an awful bedtime story!”

“Look Angel, every hand o’ pinochle’s got a different set o’ special cards, see? They’s da most powerful ones ‘n’ ever’body’s gotta keep track o’ dem real careful-like. Sometimes, da udder players don’t do that so good ‘n’ you snap down one o’ deeze big fat cards. You just trumped da udder side! Let’s get back to soccer.”

“What trump card does my team have, Uncle Loop?”

“Ah, you figured it out! You got outrage, anger, drive, determination–stuff like dat!” He throws his arms out in a broad gesture.

Clamps lets out a powerful bark and Angelica strokes the animal’s massive head. “Everybody is so angry.”

“No, take a look over there, sweetheart. Her team’s all smiles. They’s so sure. They just know they’s gonna win. They’s—whadayacall—overconfident. It’s da players on yer team is steamin’ mad. They’s breathin’ smoke. So what happens when people get all pumped up like that?”

She sniffs. “They fight?”

“Bingo! I seen it happen again and again in sport after sport. They fight like wildfire! Ever’body gives a hunert ‘n’ twenty percent. They win da game! A surprise victory! A major turnover! Somethin’ nobody expects!”

Lonagan closes Angelica’s door and sits on the stairs. For months he’s heard stupid quote after stupid quote from The Donald. Now the guy’s president elect. So he searches his phone for some quotes from Hillary and comes across a nasty collection that shocks him.

Clinton on voters: “Look, the average Democrat voter is just plain stupid. They’re easy to manipulate. That’s the easy part.”[Read it on Tumbler]

Clinton on voters: “… you could put half of Trump’s supporters into what I call the basket of deplorables. Right? They’re racist, sexist, homophobic, xenophobic, Islamaphobic—you name it.”[Read it in the New York Times]

Clinton on Benghazi: “What difference at this point does it make?” [You saw it on television]

As Lonagan reads more of her words, the invective gets strikingly shrill and profane. Finally he pockets his phone. He refuses to think any more about the foul stench pouring out of Cleopatra’s mouth.

Clinton cursing – [Tumbler]

Maybe the country got lucky, maybe not. Lonagan doesn’t know such things. He believes that every politician, without exception, is a self-serving bastard. Maybe that’s all we can expect, but at this point, he wishes with all his heart that President Elect Nebuchadnezzar eats his bitter greens and becomes the leader this country needs so badly.

■

The opinions of Mr. Lonagan and his wild conspiracy theory are not endorsed by the management. Mr. Kren has been made aware of possible turmoil planted in the mind of his young child.

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. It’s not our fault if you lose money.

The Chicago Innovation Awards – Part 4

John Jonelis

I’m at 40,000 feet on Loren Bukkett’s Gulfstream G450 trying to squeeze out his views on two accolades at the Chicago Innovation Awards—the ones they gave to Governor Pat Quinn and Mayor Rahm Emanuel. So far Loren is holding out on me.

I splash the last of the Hennessy into our snifters when this doggerel runs through my head: Loren pontificates that prizes to politicians will puncture their perfect performance and I ponder what precisely he proposes.

The plane bucks in turbulence and I almost fall out of my seat. The altitude and liquor sure are working on me—as you probably noticed. Even in a pressurized jet, you’re effectively at 8000 feet or more and liquor packs a terrific wallop. I hope it loosens up Loren before it claims me entirely. My strategy is to get him jawboning on one thing and then slide into the main issue.

Gulfstream G450

I take a deep breath of thin, dry air and get Loren’s attention. “Let’s talk about the keynote speaker, Andrew Mason. He won a Chicago Innovation Award back in 2009. Groupon had only 100 employees at that time and now it’s got 12,000 people all over the world and 1.6 billion in revenue. Not bad for a music major from Northwestern.”

The plane yaws and I continue: “Groupon was an amazing pick for the Chicago Innovation Awards. That year, the company was still in its infancy.” I might have added, in all this turbulence I feel like a baby rocking in a cradle.

Loren sizes me up before answering in his acerbic tone. “Most of what Andrew said was just a short version of the same talk I heard him give several times.”

“Really? I only heard it once before.”

Loren pauses a long moment. “One part of it is new to me—his admission that in 2009 he campaigned to beat Abbott Labs for the People’s Choice Award. He used false negative attack ads and now he’s bragging about it! Maybe he’s joking—I hope so. I’m just glad it didn’t work.”

“It earned him a big laugh from the audience.”

“Well, I don’t think it’s funny.”

“Don’t you like anything about Groupon?”

Again, he takes his time responding. “I like it that his customer service comes out of the Chicago Improv. That’s highly creative.” He pauses again. “He sometimes just throws tidbits like that out there without explaining the significance. To me, this one is striking. If that kind of thinking is systemic—and I believe it is—then the company should succeed.” He goes silent then blurts out: “And naturally I like the acceleration in growth.”

I’ve been keeping an eye on Aussy. She’s still taking notes but I notice her quick worried glances at her husband. He’s taking longer and longer to join his ideas together and I sense that it’s time to drill down to the core:

“Loren, what did you mean when you told me the Chicago Innovation Awards just ruined their perfect record?”

He knits his formidible brows. “I warn you, John. Don’t go there.”

“Is it that you don’t think political awards are appropriate?”

Loren tightens his lips and finally responds. “Actually, on one level, I agree with it. I like to see local government throw its weight behind entrepreneurs as much as possible. Bringing in the governor and the mayor to this event draws a bigger crowd and that’s positive too. But Rahm’s been popping up at these things a lot, I have to ask myself why. If he’s really contributing something, that’s fine. But if he’s just riding the backs of these hard working young people for political gain, I don’t like it.”

Mayor Rahm Emanuel at the Chicago Innovation Awards – jaj

He swallows his Hennessy and sets the empty glass down hard. “How can they can give the 2012 Visionary Award to a mayor? They should’ve used the politicians as keynote speakers and left it at that!”

“Maybe they won’t count those awards in the stats.”

“That would render the whole event meaningless!”

“You mean like giving the Nobel Peace Prize to Yasser Arafat?”

He jerks his head to the side as if he’s been jolted, then turns back and glares at me. “I choose to take that as hyperbole. But yes, that’s it precisely.”

“But you still endorse these guys?”

He passes a hand over his unkempt brow. “I like Emanuel’s sentiment when he says investors create all the jobs. And when he says that government only helps create the atmosphere for success, I agree with him. He may be the only progressive politician I ever heard rub those two ideas together. But entrepreneurship in this town is driven by the whip of massive unemployment. At the same time, the banks won’t lend. I scarcely call that an atmosphere for success.”

He draws in a sharp breath of rarified air. “I know, I know–I told you these cruel circumstances are forcing the creative renaissance that we see. It’s true. They are. But that’s not any way to sustain growth. So many of these fervent young entrepreneurs will start out with initial success only to have their hopes dashed.”

I’m amazed at Loren’s intellectual capacity. And he holds his liquor a lot better than I do even though he rarely drinks. I have to admit it, even when he’s sloshed he’s the sharpest knife in the drawer. So I try a dig: “People like it when Rahm says he’ll lengthen the bike path. You can’t deny that thunder of applause.”

He snorts. “He’s a party guy. What did Quinn ever do to merit—what do they call it? The Distinguished Innovator Award. Did he invent anything? No—he raised taxes because the state is going bankrupt. While he drives business out, he talks about the state investing in companies. On whose dime? That’s not free enterprise. That’s messing in my backyard.”

“Do you withdraw your support?”

He winces. “A governor should lean on the banks to free up capital. I’d applaud an effort like that. But he talks about education reform, high speed rail, clean water—the usual high-ticket malarkey. You want to know what really happened tonight? They propped those two guys up front like carved idols and bowed down in homage! It’s the golden calf all over again!”

“Loren, it’s a political season and this is still Chicago. These guys are trying to get in front of any crowd they can.”

“This is a distinguished event! There’s no reason to encourage that kind of behavior!” He shakes his head. “The old political machine grinds on and on, year after year–I can’t get involved in that!” Then he yawns and says something unintelligible. “I’m tired. Interview over.” He closes his eyes.

I figure he just got something off his chest—he relieved the pressure—and now the liquor and altitude can take over.

Just when I think he’s asleep he speaks softly, eyes still closed: “John, did you ever see the Great McGinty? The motion picture…Preston Sturges…written and directed…brilliant…such a long time ago…it still tells the whole story…nothing has changed…”

Again I think he’s asleep when he mumbles, “Next time you want to interview me, pick a different topic.”

I give him a salute as he drifts off to sleep.

Aussy tucks a blanket around him and then turns to me with an accusing look. “I hope you’re satisfied,” she says.

Those are the first words I hear from her the whole flight and it’s all scorn. Then she tosses a blanket in my face. As I make myself comfortable, I get a nasty feeling that she’ll arrange a slow plane with lots of layovers for my return trip. Ω

Find Chicago Venture Magazine at www.ChicagoVentureMagazine.com Comments and re-posts are welcomed and encouraged. This is not investment advice – do your own due diligence. I cannot guarantee accuracy but I give you my best.

The Story of Ray Markman-Part 12

Friday, 4:40 pm

I’m winding up my own conclusions about Ray Markman’s bold assertion that he never worked a day in his life. At the same time, Loop Lonagan’s big boxing match with Alexander Harbinger is getting close. I don’t know how you feel, personally about the sad spectacle of a friend beating up on another friend—in cold blood in a rule-based arena—but I plan to be there to enjoy every second of it.

“Okay,” I say, “I’ve got some stuff that needs saying. At this point, Ray’s outa the video business, on the loose, trying to decide what he wants to do and he tries a bunch of things: He teaches marketing at Northwestern and NYU. helps edit the classic book, DIRECT MARKETING by Edward L. Nash and writes the chapter on broadcast advertising.

“He gives a series of speeches to the Direct Marketing Association. Then he gets a call from the US Secretary of Commerce. ‘Will you give that speech around the country? We’ll program it, pay your fare, provide a publicist for you at all times and we’ll pick the venues.’ He does that for two years and winds up with a personal commendation from the president.”

Lonagan looks at me slantwise. “So he’s right back on duh road? You gotta be puttin’ that outa sequence.”

“Maybe—but it happened and there’s more to it.

“Ray and his partner start doing town hall meetings to make people aware of economic issues. They start a company called FACT with 15 congressmen and senators—luminaries at the time. They support him and lend their names to it. When he begins his fundraising, a $500K donor asks him to come to New York first. ‘I’ll introduce you to some folks,’ he says.

Ronald Reagan – Reagan Library

“Ray gets to New York and guess what. This guy’s got a duplex overlooking the UN building. He walks Ray across the street and introduces him to the NFIB, the National Federation of Independent Businessmsn, an organization of a million conservative thinkers and businessmen. Then all of a sudden it’s, ‘Ronny, I want to introduce Ray Markman.’ And it’s Ronald Reagan. This is before he’s president. And Reagan gives a speech. He says everything Ray wants to say and more and Ray’s thinking, ‘They don’t need us. If he gets elected, he’ll have millions of dollars of public money and we have to raise ours privately. He’s gonna do it from the stump.’

Meryll Lynch Bull

“So Ray gets out of public life because Reagan is doing the job for him. And Ray appreciates it, too.” I read the quote out loud: ‘He was terrific. The country was in a depression and he got us out of it. That’s when Meryll Lynch started running the ad: We’re Bullish on America. It was because of Reagan.’

Lonagan takes his feet off my desk and looks at me hard. “We done with all the do-good stuff? Good. Soes a friend—one of them five guys worked with him on his first companies—this guy’s a general agent in the insurance business—real successful. He says to Ray, ‘Why don’t we start a wealth management company?’ He’ll do the insurance and Ray’ll do the investing.

“So Ray takes his Series 7. He says, ‘Toughest test I ever took in my life. Six hours. A lotta work. But I passed the first time luckily somehow.’ Hell, I took my Series 7 and I’m here to tell yuh it’s tough. Ray’s just bein’ modest when he says he got lucky passing it duh first time.”

Lonagan leans back in his chair. “So they hang out their shingle and start what he calls the Financial Life Planning Company.

“Of course, he’s lookin’ for investors to get started. And he starts with friends like everybody does. They’d say stuff like, ‘We got Meryll Lynch. But you’re a good friend. Howsabout $25,000?’” (I love the whiny voice Loop uses in his parody of a reluctant client.) “Hey–truth is, Ray’ll take 25 cents! He ain’t got no business yet.”

Lonagan grins. “So he takes this course at duh University of Chicago in modern portfolio theory. He learns duh same stuff we all learn in that line o’ work—stuff outsiders don’t know about. Basically, it’s as simple as this: If you add a few non-correlated assets like real estate or commodities to a portfolio o’ stocks ‘n’ bonds, you make out real good. You increase return ‘n’ lower duh risk! That is, if you do it right. They plot it on a fancy curve called the ‘Efficient Frontier.’ But Ray goes at it a different way. Uses modern portfolio theory by investing in startups. And he builds a substantial business that way.

— The Efficient Frontier — (source unknown)

“But after a while, regulations change and broker dealers get even greedier. They want him to sell their own stuff exclusive. REITS, limited partnerships—boring kinda stuff—not the big returns he gets on startup companies.”

He pours more scotch. “So about that time, Ray and Len Bland start showcasing and funding startup companies. After some time, they build what I call a storefront. Startups come to them. They got a regular vetting process in place. They can pick the best companies outa the bunch. Meanwhile, they’re all comfy in their air-conditioned store, looking out their storefront window at all duh other consultants sweatin’ at duh curb, holdin’ out their tin cups fer work. And if it’s cold, Ray just turns up the thermostat.”

Midwest Renaissance Fund

“So why shouldn’t they start a venture capital fund and pick the best companies they know? Just stands to reason. Ray comes up with the name ‘Renaissance.’”

“Here’s what Ray says.” Loop reads from his notepad out loud: “’I had a partner helping me raise money. A terrific young guy—and he was a serial entrepreneur himself. He and I were working on projects. He was in Indianapolis. I said, ‘I’d love for you to join us.’ So he comes to Chicago and I introduce him to Len. Everybody likes everybody else. He has a lot of contacts and begins bringing people in. Pretty soon we’ve got a guy in Columbus Ohio, in Cleveland, three guys in Indianapolis which by the way is a real hotbed. Now we’re in eight states. And that’s the way this will happen.’”

“Hey Loop, look at the time. Better get your sorry ass over to the club or you’ll lose that boxing match by default.”

He glances at his smartphone and leaps to his feet. “I’ll get a cab. Split da fare with yuh.”

I nod in the affirmative. But how can a guy with that much money be so cheap?

And on the ride over, I make up my mind. After all the research and all the arguments back and forth, I believe what Ray said. I believe it when he claims he never worked a day in his life. And I like the way he put it: ‘I loved what I did. To me working was the greatest things in the world. I still average twelve hours a day. I never felt I worked a day in my life.’

My cell phone rings. It’s Bill Blaire placing a bet on Harbinger. $10K. He must be crazy. No way Harbinger wins this fight. I take the bet.

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